Montana regulators begin hearings on NorthWestern, Black Hills merger proposal

The biggest question in Helena is whether NorthWestern Energy customers will get steadier service or a weaker voice if regulators approve the company’s $15.4 billion merger with Black Hills Corp.

The Montana Public Service Commission opened four days of hearings in the Bollinger Conference Room in Helena, with the case docketed as 2025.10.078. Public comment was available, and the hearings were also being streamed on Zoom as commissioners began weighing a deal that would fold NorthWestern into a larger utility serving about 2.1 million electric and natural gas customers in Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming.

If approved, the combined company would be led by NorthWestern CEO Brian Bird, while Black Hills CEO Linn Evans would retire after the closing. The companies say the all-stock, tax-free merger, announced in August 2025, would create a larger utility with better access to capital, more room to invest in infrastructure and the possibility of more stable rates. They also say Montana operations and PSC oversight would remain in place.

But the hearings have quickly become a referendum on whether the deal is really about Montana customers or about serving large power users, especially data centers. In March, PSC commissioners rejected motions that would have forced NorthWestern to disclose more about data-center plans in the merger case, including details tied to as much as 1,400 megawatts of new load. NorthWestern said those details were not relevant to the merger review, while PSC staff said data centers were being handled in other proceedings. NorthWestern has said it is in talks with 11 other entities about data centers, including at least one Montana developer.

Critics from the Montana Environmental Information Center, Montana Farmers Union and 350Montana argue that fast-growing data-center demand could push costs onto ordinary households and small businesses. Anne Hedges of the Montana Environmental Information Center said Montanans should press the commission to protect their interests, warning that in other states data-center customers have driven bills higher while utilities and data centers benefit and regular customers help cover the load.

Supporters of the merger counter that a larger utility would be better able to weather market volatility and invest in the grid. In opening statements Tuesday, NorthWestern lawyer Sarah Norcott said the merged company would still answer to Montana regulators and that Montana operations would remain where they are today.

The hearing also sharpened governance concerns. Monica Tranel, representing 350Montana and the Montana Farmers Union, said the deal amounted to a betrayal of Montanans, noting that Black Hills would own 56% of the parent company, NorthWestern 44%, and that the combined board would have six Black Hills seats and five NorthWestern seats.

Financially, the proposal has raised its own red flags. A filing in the case estimated labor savings of about $36 million, feeding fears of job cuts, while the companies have promoted a long-term earnings growth target of 5% to 7%. With the PSC’s five elected commissioners all Republicans and two seats on the ballot in 2026, the merger has become one of the state’s most politically charged utility fights, with ratepayer protection, reliability and regulatory leverage all now on the line.